Hero MotoCorp enters into collaboration for co-development of premium electric motorcyclesHEROMOTOCO - 3719 Change: 96.75 (2.67 %)
In a regulatory exchange filing, Hero MotoCorp has informed exchanges about finalising a collaboration agreement with Zero Motorcycles, the California (US)-based manufacturer of premium electric motorcycles and powertrains. The collaboration will focus on co-developing electric motorcycles. The company also plans to invest US$60 million (Rs 480 crore) as equity funds in Zero Motorcycles for 6.4% stake (valuing the target company at 15x P/S on trailing basis).
Zero Motorcycles is engaged into manufacturing Electric motorcycles and powertrain components and offers sports and street bikes in California (revenues pegged at US$61 million in CY21). Zero Motorcycles sports bike currently offers ~300 km of city range and is powered by 17.3 Kwh battery whereas street version offers 130 km of city range and is powered by 7.2 Kwh battery. We believe the company is now pushing hard on the EV front through organic as well as inorganic routes like partnerships for EV charging network and equity investment in OEMs like Aether Energy & Zero Motorcycles, with its own captive product launch (under Vida powered by Hero) scheduled for launch on October 7, 2022.